Steep diesel and petrol price projections for October

South African motorists could again be pushed to the brink in October if the latest fuel price projections from the Central Energy Fund (CEF) are anything to go by.

The CEF published its latest projections on Tuesday, showing significant under-recoveries for both grades of petrol and diesel so far.

Under current market conditions, all grades of fuel could increase by more than R2 per litre in October.

The data suggests that 93 petrol could increase by R2.29 per litre, while the increase for 95 petrol could be R2.41. Diesel users could potentially be paying between R2.04 and R2.41 per litre at the start of October.

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From these projections, petrol prices are likely to come close to the R30/l mark for the first time, while the price of diesel could return to its previous record of R31/l. This is slightly higher than those published by the CEF last week.

The final decision will be made and announced by the Department of Mineral and Petroleum Resources, mostly based on global Brent crude prices and the rand/dollar exchange rate.

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Brent crude prices breached the $100-a-barrel mark again this month following renewed tensions in the Middle East.

The oil price is currently trading at about $105 a barrel, an 18% jump since a month ago, when it was around $89 a barrel.

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